Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Snap-on ( SNA) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Snap-on as such a stock due to the following factors:
- SNA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $38.6 million.
- SNA has traded 4,267 shares today.
- SNA is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SNA with the Ticky from Trade-Ideas. See the FREE profile for SNA NOW at Trade-Ideas More details on SNA: Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. The stock currently has a dividend yield of 1.6%. SNA has a PE ratio of 18.7. Currently there are 3 analysts that rate Snap-on a buy, no analysts rate it a sell, and 2 rate it a hold. The average volume for Snap-on has been 304,600 shares per day over the past 30 days. Snap-on has a market cap of $6.5 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.39 and a short float of 1.1% with 1.71 days to cover. Shares are up 2.4% year-to-date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Snap-on as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 17.3%. Since the same quarter one year prior, revenues slightly increased by 6.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.48, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SNA has a quick ratio of 1.67, which demonstrates the ability of the company to cover short-term liquidity needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 39.85% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SNA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- SNAP-ON INC has improved earnings per share by 11.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SNAP-ON INC increased its bottom line by earning $5.93 versus $5.20 in the prior year. This year, the market expects an improvement in earnings ($6.54 versus $5.93).
- The gross profit margin for SNAP-ON INC is rather high; currently it is at 52.66%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.18% is above that of the industry average.
- You can view the full Snap-on Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.